Reddit Inc. stock declines amid market weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2024
0mins
Should l Buy RDDT?
Reddit Inc. (RDDT) has seen its stock price decline by 5.00% during regular trading, hitting a 5-day low. This drop comes as the broader market experiences significant losses, with the Nasdaq-100 down 1.23% and the S&P 500 down 1.38%.
The decline in Reddit's stock is primarily attributed to sector rotation, as investors are shifting away from tech stocks amid broader market weakness. Despite recent reports highlighting Reddit's substantial user growth and revenue increase, the current market conditions have overshadowed these positive developments. Analysts noted that Reddit's daily active unique users increased by 19% year-over-year, and its annual revenue surged by 69% to $2.2 billion in 2025, marking its first GAAP profitability.
The implications of this stock movement suggest that while Reddit has strong fundamentals and growth potential, external market pressures are currently influencing investor sentiment. The company’s future growth expectations remain positive, with analysts projecting significant revenue and EBITDA growth in the coming years.
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Analyst Views on RDDT
Wall Street analysts forecast RDDT stock price to rise
22 Analyst Rating
14 Buy
8 Hold
0 Sell
Moderate Buy
Current: 139.390
Low
207.00
Averages
260.00
High
325.00
Current: 139.390
Low
207.00
Averages
260.00
High
325.00
About RDDT
Reddit, Inc. operates a social platform, Reddit. Reddit is a community of communities. It is built on shared interests, passion, and trust and is home to open and authentic conversations on the Internet. Reddit is a global, digital city where anyone in the world can join a community to learn from one another, engage in authentic conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share a few laughs, and find belonging. Reddit has thousands of communities, endless conversations, and authentic human connections. Communities on Reddit are organized based on specific interests and are called subreddits. Reddit offers real-time access to evolving and dynamic topics, such as sports, movies, news, fashion, and the latest trends. On Reddit, users can submit, vote, and comment on the topics they care about. It has approximately 100,000+ active communities and approximately 101+ million daily active visitors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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